Published by Global Banking & Finance Review®
Posted on January 10, 2025
1 min readLast updated: January 27, 2026
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Deutsche Bank recommends selling sterling due to stalled UK current account improvements and increased currency volatility.
LONDON (Reuters) - Deutsche Bank said investors should sell the pound on a broad trade-weighted basis, in a Friday note, as Britain's current account deficit is no longer improving, and the currency is vulnerable to the recent increase in volatility.
The pound has lost nearly 2% this week against a strong dollar to a 14-month low of $1.2239
It has also has also lost ground on the euro and other majors, a reversal after sterling was the second best performing major currency last year behind the dollar.
"With the trade-weighted sterling index still sitting just over 2% off its post-Brexit highs, we think there's further to go in the recent pound weakness," Deutsche said.
"We like selling GBP against a basket of other major currencies," they said, mentioning the euro, dollar, Swiss franc and Japanese yen.
Deutsche had been bullish on the pound until mid December.
(Reporting by Alun John; Editing by Amanda Cooper)
The main topic is Deutsche Bank's recommendation to sell sterling due to the UK's current account deficit and currency volatility.
Deutsche Bank cites the UK's stagnant current account deficit and increased currency volatility as reasons to sell sterling.
The pound has lost nearly 2% against the dollar and has weakened against the euro and other major currencies.
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